Peel backs £100m UK Coal cash bid

PEEL Holdings , owner of the Trafford Centre, is backing the £100m expansion of UK Coal . UK Coal, which supplies around 15 per cent of all coal burned in Britain, unveiled details of the £100m City fundraising, which it hopes will reduce debt and put it in a position to finance a major investment programme.

UK Coal, which supplies around 15 per cent of all coal burned in Britain, unveiled details of the £100m City fundraising, which it hopes will reduce debt and put it in a position to finance a major investment programme.

It wants to extend the working life of its Kellingley and Thoresby deep mines in Yorkshire by two years to around 2019 and 2017 respectively, as well as further develop its Daw Mill colliery in Warwickshire.

Peel Holdings has a 28 per cent stake in the company, and is backing the capital raising programme.

UK Coal's finances have been put under strain by long-term contracts requiring it to sell coal at low, fixed prices. At the same time, production costs have risen above inflation.